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earnings</title> <meta name="description" content="Search results for: earnings"> <meta name="keywords" content="earnings"> <meta name="viewport" content="width=device-width, initial-scale=1, minimum-scale=1, maximum-scale=1, user-scalable=no"> <meta charset="utf-8"> <link href="https://cdn.waset.org/favicon.ico" type="image/x-icon" rel="shortcut icon"> <link href="https://cdn.waset.org/static/plugins/bootstrap-4.2.1/css/bootstrap.min.css" rel="stylesheet"> <link href="https://cdn.waset.org/static/plugins/fontawesome/css/all.min.css" rel="stylesheet"> <link href="https://cdn.waset.org/static/css/site.css?v=150220211555" rel="stylesheet"> </head> <body> <header> <div class="container"> <nav class="navbar navbar-expand-lg navbar-light"> <a class="navbar-brand" href="https://waset.org"> <img src="https://cdn.waset.org/static/images/wasetc.png" alt="Open Science Research Excellence" title="Open Science Research Excellence" /> </a> <button class="d-block d-lg-none navbar-toggler ml-auto" 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id="custom-search-input"> <div class="input-group"> <i class="fas fa-search"></i> <input type="text" class="search-query" name="q" placeholder="Author, Title, Abstract, Keywords" value="earnings"> <input type="submit" class="btn_search" value="Search"> </div> </div> </form> </div> </div> <div class="row mt-3"> <div class="col-sm-3"> <div class="card"> <div class="card-body"><strong>Commenced</strong> in January 2007</div> </div> </div> <div class="col-sm-3"> <div class="card"> <div class="card-body"><strong>Frequency:</strong> Monthly</div> </div> </div> <div class="col-sm-3"> <div class="card"> <div class="card-body"><strong>Edition:</strong> International</div> </div> </div> <div class="col-sm-3"> <div class="card"> <div class="card-body"><strong>Paper Count:</strong> 158</div> </div> </div> </div> <h1 class="mt-3 mb-3 text-center" style="font-size:1.6rem;">Search results for: earnings</h1> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">158</span> A Study on the Determinants of Earnings Response Coefficient in an Emerging Market</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Bita%20Mashayekhi">Bita Mashayekhi</a>, <a href="https://publications.waset.org/abstracts/search?q=Zeynab%20Lotfi%20Aghel"> Zeynab Lotfi Aghel</a> </p> <p class="card-text"><strong>Abstract:</strong></p> The determinants of Earnings Response Coefficient (ERC), including firm size, earnings growth, and earnings persistence are studied in this research. These determinants are supposed to be moderator variables that affect ERC and Return Response Coefficient. The research sample contains 82 Iranian listed companies in Tehran Stock Exchange (TSE) from 2001 to 2012. Gathered data have been processed by EVIEWS Software. Results show a significant positive relation between firm size and ERC, and also between earnings growth and ERC; however, there is no significant relation between earnings persistence and ERC. Also, the results show that ERC will be increased by firm size and earnings growth, but there is no relation between earnings persistence and ERC. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=earnings%20response%20coefficient%20%28ERC%29" title="earnings response coefficient (ERC)">earnings response coefficient (ERC)</a>, <a href="https://publications.waset.org/abstracts/search?q=return%20response%20coefficient%20%28RRC%29" title=" return response coefficient (RRC)"> return response coefficient (RRC)</a>, <a href="https://publications.waset.org/abstracts/search?q=firm%20size" title=" firm size"> firm size</a>, <a href="https://publications.waset.org/abstracts/search?q=earnings%20growth" title=" earnings growth"> earnings growth</a>, <a href="https://publications.waset.org/abstracts/search?q=earnings%20persistence" title=" earnings persistence"> earnings persistence</a> </p> <a href="https://publications.waset.org/abstracts/54086/a-study-on-the-determinants-of-earnings-response-coefficient-in-an-emerging-market" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/54086.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">334</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">157</span> Earnings Volatility and Earnings Predictability</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Yosra%20Ben%20Mhamed">Yosra Ben Mhamed</a> </p> <p class="card-text"><strong>Abstract:</strong></p> Most previous research that investigates the importance of earnings volatility for a firm’s value has focused on the effects of earnings volatility on the cost of capital. Many study illustrate that earnings volatility can reduce the firm’s value by enhancing the cost of capital. However, a few recent studies directly examine the relation between earnings volatility and subsequent earnings levels. In our study, we further explore the role of volatility in forecasting. Our study makes two primary contributions to the literature. First, taking into account the level of current firm’s performance, we provide causal theory to the link between volatility and earnings predictability. Nevertheless, previous studies testing the linearity of this relationship have not mentioned any underlying theory. Secondly, our study contributes to the vast body of fundamental analysis research that identifies a set of variables that improve valuation, by showing that earnings volatility affects the estimation of future earnings. Projections of earnings are used by valuation research and practice to derive estimates of firm value. Since we want to examine the impact of volatility on earnings predictability, we sort the sample into three portfolios according to the level of their earnings volatility in ascending order. For each quintile, we present the predictability coefficient. In a second test, each of these portfolios is, then, sorted into three further quintiles based on their level of current earnings. These yield nine quintiles. So we can observe whether volatility strongly predicts decreases on earnings predictability only for highest quintile of earnings. In general, we find that earnings volatility has an inverse relationship with earnings predictability. Our results also show that the sensibility of earnings predictability to ex-ante volatility is more pronounced among profitability firms. The findings are most consistent with overinvestment and persistence explanations. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=earnings%20volatility" title="earnings volatility">earnings volatility</a>, <a href="https://publications.waset.org/abstracts/search?q=earnings%20predictability" title=" earnings predictability"> earnings predictability</a>, <a href="https://publications.waset.org/abstracts/search?q=earnings%20persistence" title=" earnings persistence"> earnings persistence</a>, <a href="https://publications.waset.org/abstracts/search?q=current%20profitability" title=" current profitability"> current profitability</a> </p> <a href="https://publications.waset.org/abstracts/23936/earnings-volatility-and-earnings-predictability" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/23936.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">433</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">156</span> The Effect of Corporate Governance on Earnings Management: When Firms Report Increasing Earnings</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Su-Ping%20Liu">Su-Ping Liu</a>, <a href="https://publications.waset.org/abstracts/search?q=Yue%20Tian"> Yue Tian</a>, <a href="https://publications.waset.org/abstracts/search?q=Yifan%20Shen"> Yifan Shen </a> </p> <p class="card-text"><strong>Abstract:</strong></p> This study investigates the effect of corporate governance on earnings management when firms have reported a long stream of earnings increases (hereafter referred to as earnings beaters). We expect that good quality of corporate governance decreases the probability of income-increasing earnings management. We employ transparent tools to capture firms’ opportunistic management behavior, specifically, the repurchase of stock. In addition, we use corporate governance proxies to measure the degree of corporate governance, including board size, board independence, CEO duality, and the frequency of meeting. The results hold after the controlling of variables that suggested in prior literature. We expect that the simple technique, that is, firms’ degree of corporate governance, to be used as an inexpensive first step in detecting earnings management. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=corporate%20governance" title="corporate governance">corporate governance</a>, <a href="https://publications.waset.org/abstracts/search?q=earnings%20management" title=" earnings management"> earnings management</a>, <a href="https://publications.waset.org/abstracts/search?q=earnings%20patterns" title=" earnings patterns"> earnings patterns</a>, <a href="https://publications.waset.org/abstracts/search?q=stock%20repurchase" title=" stock repurchase"> stock repurchase</a> </p> <a href="https://publications.waset.org/abstracts/113537/the-effect-of-corporate-governance-on-earnings-management-when-firms-report-increasing-earnings" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/113537.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">176</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">155</span> A Sector-Wise Study on Detecting Earnings Management in India</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Raghuveer%20Kaur">Raghuveer Kaur</a>, <a href="https://publications.waset.org/abstracts/search?q=Kartikay%20Sharma"> Kartikay Sharma</a>, <a href="https://publications.waset.org/abstracts/search?q=Ashu%20Khanna"> Ashu Khanna</a> </p> <p class="card-text"><strong>Abstract:</strong></p> Earnings management has been present from times immemorial. The recent downfall of giant enterprises like Enron, Satyam and WorldCom has brought a lot of focus on the study and detection of earnings management. The present study is an attempt to study earnings management in one of the fastest emerging economy - India. The study makes an attempt to understand earnings management in different sectors of the economy. The paper first tests a hypothesis to check whether different sectors of India are engaged in earnings management or not. In the later section the paper aims to study the level of earnings management in 6 popular sectors of India: IT&BPO, Retail, Telecom, Biotech, Hotels and coffee. To measure earnings management two popular techniques of detecting earnings management has been employed: Modified Jones Model and Beniesh M Score. A total of 332 companies were studied. Publicly available data from Capitaline database has been used. The paper also classifies the top and bottom five performers on the basis of sales turnover in each sector and identifies whether they manage their earnings or not. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=earnings%20management" title="earnings management">earnings management</a>, <a href="https://publications.waset.org/abstracts/search?q=India" title=" India"> India</a>, <a href="https://publications.waset.org/abstracts/search?q=modified%20Jones%20model" title=" modified Jones model"> modified Jones model</a>, <a href="https://publications.waset.org/abstracts/search?q=Beneish%20M%20score" title=" Beneish M score"> Beneish M score</a> </p> <a href="https://publications.waset.org/abstracts/10154/a-sector-wise-study-on-detecting-earnings-management-in-india" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/10154.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">516</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">154</span> The Changes of the Relationship between Audit Quality and Earnings Management after Financial Crisis</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Chengxuan%20Geng">Chengxuan Geng</a>, <a href="https://publications.waset.org/abstracts/search?q=Yizhou%20E"> Yizhou E</a> </p> <p class="card-text"><strong>Abstract:</strong></p> This paper mainly examines the changes in the relationship between earnings management and audit quality before and after financial crisis in the context of American firms from 2005 to 2010. Based on a sample of 3584 firm year observations, we find that there are changes concerning the relation between accrual-based earnings management and audit quality during the pre-crisis and post-crisis periods. However, the results do not provide enough evidence with regard to the variances in the association between real activities earnings management and audit quality during these two periods. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=audit%20quality" title="audit quality">audit quality</a>, <a href="https://publications.waset.org/abstracts/search?q=earnings%20management" title=" earnings management"> earnings management</a>, <a href="https://publications.waset.org/abstracts/search?q=financial%20crisis" title=" financial crisis"> financial crisis</a>, <a href="https://publications.waset.org/abstracts/search?q=relationship" title=" relationship"> relationship</a> </p> <a href="https://publications.waset.org/abstracts/10159/the-changes-of-the-relationship-between-audit-quality-and-earnings-management-after-financial-crisis" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/10159.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">339</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">153</span> Earnings-Related Information, Cognitive Bias, and the Disposition Effect</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Chih-Hsiang%20Chang">Chih-Hsiang Chang</a>, <a href="https://publications.waset.org/abstracts/search?q=Pei-Shan%20Kao"> Pei-Shan Kao</a> </p> <p class="card-text"><strong>Abstract:</strong></p> This paper discusses the reaction of investors in the Taiwan stock market to the most probable unknown earnings-related information and the most probable known earnings-related information. As compared with the previous literature regarding the effect of an official announcement of earnings forecast revision, this paper further analyzes investors’ cognitive bias toward the unknown and known earnings-related information, and the role of media during the investors' reactions to the foresaid information shocks. The empirical results show that both the unknown and known earnings-related information provides useful information content for a stock market. In addition, cognitive bias and disposition effect are the behavioral pitfalls that commonly occur in the process of the investors' reactions to the earnings-related information. Finally, media coverage has a remarkable influence upon the investors' trading decisions. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=cognitive%20bias" title="cognitive bias">cognitive bias</a>, <a href="https://publications.waset.org/abstracts/search?q=role%20of%20media" title=" role of media"> role of media</a>, <a href="https://publications.waset.org/abstracts/search?q=disposition%20effect" title=" disposition effect"> disposition effect</a>, <a href="https://publications.waset.org/abstracts/search?q=earnings-related%20information" title=" earnings-related information"> earnings-related information</a>, <a href="https://publications.waset.org/abstracts/search?q=behavioral%20pitfall" title=" behavioral pitfall"> behavioral pitfall</a> </p> <a href="https://publications.waset.org/abstracts/78083/earnings-related-information-cognitive-bias-and-the-disposition-effect" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/78083.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">224</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">152</span> Earnings Management and Firm’s Creditworthiness </h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Maria%20A.%20Murtiati">Maria A. Murtiati</a>, <a href="https://publications.waset.org/abstracts/search?q=Ancella%20A.%20Hermawan"> Ancella A. Hermawan</a> </p> <p class="card-text"><strong>Abstract:</strong></p> The objective of this study is to examine whether the firm’s eligibility to get a bank loan is influenced by earnings management. The earnings management is distinguished between accruals and real earnings management. Hypothesis testing is carried out with logistic regression model using sample of 285 companies listed at Indonesian Stock Exchange in 2010. The result provides evidence that a greater magnitude in accruals earnings management increases the firm’s probability to be eligible to get bank loan. In contrast, real earnings management through abnormal cash flow and abnormal discretionary expenses decrease firm’s probability to be eligible to get bank loan, while real management through abnormal production cost increases such probability. The result of this study suggests that if the earnings management is assumed to be opportunistic purpose, the accruals based earnings management can distort the banks credit analysis using financial statements. Real earnings management has more impact on the cash flows, and banks are very concerned on the firm’s cash flow ability. Therefore, this study indicates that banks are more able to detect real earnings management, except abnormal production cost in real earning management. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=discretionary%20accruals" title="discretionary accruals">discretionary accruals</a>, <a href="https://publications.waset.org/abstracts/search?q=real%20earning%20management" title=" real earning management"> real earning management</a>, <a href="https://publications.waset.org/abstracts/search?q=bank%20loan" title=" bank loan"> bank loan</a>, <a href="https://publications.waset.org/abstracts/search?q=credit%20worthiness" title=" credit worthiness"> credit worthiness</a> </p> <a href="https://publications.waset.org/abstracts/5629/earnings-management-and-firms-creditworthiness" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/5629.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">346</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">151</span> The Impact of other Comprehensive Income Disclosure and Corporate Governance on Earnings Management and Firm Performance</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Yan%20Wang">Yan Wang</a>, <a href="https://publications.waset.org/abstracts/search?q=Yuan%20George%20Shan"> Yuan George Shan</a> </p> <p class="card-text"><strong>Abstract:</strong></p> This study examines whether earnings management reduces firm performance and how other comprehensive income (OCI) disclosure and strong corporate governance restrain earnings management. Using a data set comprising 6,260 firm-year observations from listed companies on the Shanghai and Shenzhen Stock Exchanges during 2009–2015, the results indicate that OCI disclosure generally improves firm performance, but earnings management lowers firm performance. The study also finds that OCI disclosure and corporate governance are complementary in restraining earnings manipulation and promote firm performance. The implications of the findings are relevant policy-makers and regulators in assisting them evaluate the consequences of convergence of Chinese Accounting Standards with the International Financial Reporting Standards. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=other%20comprehensive%20income" title="other comprehensive income">other comprehensive income</a>, <a href="https://publications.waset.org/abstracts/search?q=corporate%20governance" title=" corporate governance"> corporate governance</a>, <a href="https://publications.waset.org/abstracts/search?q=earnings%20management" title=" earnings management"> earnings management</a>, <a href="https://publications.waset.org/abstracts/search?q=firm%20performance" title=" firm performance"> firm performance</a>, <a href="https://publications.waset.org/abstracts/search?q=China" title=" China"> China</a> </p> <a href="https://publications.waset.org/abstracts/106120/the-impact-of-other-comprehensive-income-disclosure-and-corporate-governance-on-earnings-management-and-firm-performance" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/106120.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">231</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">150</span> Fair Value Accounting and Evolution of the Ohlson Model</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Mohamed%20Zaher%20Bouaziz">Mohamed Zaher Bouaziz</a> </p> <p class="card-text"><strong>Abstract:</strong></p> Our study examines the Ohlson Model, which links a company's market value to its equity and net earnings, in the context of the evolution of the Canadian accounting model, characterized by more extensive use of fair value and a broader measure of performance after IFRS adoption. Our hypothesis is that if equity is reported at its fair value, this valuation is closely linked to market capitalization, so the weight of earnings weakens or even disappears in the Ohlson Model. Drawing on Canada's adoption of the International Financial Reporting Standards (IFRS), our results support our hypothesis that equity appears to include most of the relevant information for investors, while earnings have become less important. However, the predictive power of earnings does not disappear. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=fair%20value%20accounting" title="fair value accounting">fair value accounting</a>, <a href="https://publications.waset.org/abstracts/search?q=Ohlson%20model" title=" Ohlson model"> Ohlson model</a>, <a href="https://publications.waset.org/abstracts/search?q=IFRS%20adoption" title=" IFRS adoption"> IFRS adoption</a>, <a href="https://publications.waset.org/abstracts/search?q=value-relevance%20of%20equity%20and%20earnings" title=" value-relevance of equity and earnings"> value-relevance of equity and earnings</a> </p> <a href="https://publications.waset.org/abstracts/106775/fair-value-accounting-and-evolution-of-the-ohlson-model" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/106775.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">189</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">149</span> Real Activities Manipulation vs. Accrual Earnings Management: The Effect of Political Risk</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Heba%20Abdelmotaal">Heba Abdelmotaal</a>, <a href="https://publications.waset.org/abstracts/search?q=Magdy%20Abdel-Kader"> Magdy Abdel-Kader</a> </p> <p class="card-text"><strong>Abstract:</strong></p> Purpose: This study explores whether a firm’s effective political risk management is preventing real and accrual earnings management . Design/methodology/approach: Based on a sample of 130 firms operating in Egypt during the period 2008-2013, two hypotheses are tested using the panel data regression models. Findings: The empirical findings indicate a significant relation between real and accrual earnings management and political risk. Originality/value: This paper provides a statistically evidence on the effects of the political risk management failure on the mangers’ engagement in the real and accrual earnings management practices, and its impact on the firm’s performance. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=political%20risk" title="political risk">political risk</a>, <a href="https://publications.waset.org/abstracts/search?q=risk%20management%20failure" title=" risk management failure"> risk management failure</a>, <a href="https://publications.waset.org/abstracts/search?q=real%20activities%20manipulation" title=" real activities manipulation"> real activities manipulation</a>, <a href="https://publications.waset.org/abstracts/search?q=accrual%20earnings%20management" title=" accrual earnings management"> accrual earnings management</a> </p> <a href="https://publications.waset.org/abstracts/32461/real-activities-manipulation-vs-accrual-earnings-management-the-effect-of-political-risk" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/32461.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">439</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">148</span> The Reliability of Management Earnings Forecasts in IPO Prospectuses: A Study of Managers’ Forecasting Preferences</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Maha%20Hammami">Maha Hammami</a>, <a href="https://publications.waset.org/abstracts/search?q=Olfa%20Benouda%20Sioud"> Olfa Benouda Sioud </a> </p> <p class="card-text"><strong>Abstract:</strong></p> This study investigates the reliability of management earnings forecasts with reference to these two ingredients: verifiability and neutrality. Specifically, we examine the biasedness (or accuracy) of management earnings forecasts and company specific characteristics that can be associated with accuracy. Based on sample of 102 IPO prospectuses published for admission on NYSE Euronext Paris from 2002 to 2010, we found that these forecasts are on average optimistic and two of the five test variables, earnings variability and financial leverage are significant in explaining ex post bias. Acknowledging the possibility that the bias is the result of the managers’ forecasting behavior, we then examine whether managers decide to under-predict, over-predict or forecast accurately for self-serving purposes. Explicitly, we examine the role of financial distress, operating performance, ownership by insiders and the economy state in influencing managers’ forecasting preferences. We find that managers of distressed firms seem to over-predict future earnings. We also find that when managers are given more stock options, they tend to under-predict future earnings. Finally, we conclude that the management earnings forecasts are affected by an intentional bias due to managers’ forecasting preferences. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=intentional%20bias" title="intentional bias">intentional bias</a>, <a href="https://publications.waset.org/abstracts/search?q=management%20earnings%20forecasts" title=" management earnings forecasts"> management earnings forecasts</a>, <a href="https://publications.waset.org/abstracts/search?q=neutrality" title=" neutrality"> neutrality</a>, <a href="https://publications.waset.org/abstracts/search?q=verifiability" title=" verifiability"> verifiability</a> </p> <a href="https://publications.waset.org/abstracts/6243/the-reliability-of-management-earnings-forecasts-in-ipo-prospectuses-a-study-of-managers-forecasting-preferences" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/6243.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">235</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">147</span> The Impact of Diversification Strategy on Leverage and Accrual-Based Earnings Management</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Safa%20Lazzem">Safa Lazzem</a>, <a href="https://publications.waset.org/abstracts/search?q=Faouzi%20Jilani"> Faouzi Jilani</a> </p> <p class="card-text"><strong>Abstract:</strong></p> The aim of this research is to investigate the impact of diversification strategy on the nature of the relationship between leverage and accrual-based earnings management through panel-estimation techniques based on a sample of 162 nonfinancial French firms indexed in CAC All-Tradable during the period from 2006 to 2012. The empirical results show that leverage increases encourage managers to manipulate earnings management. Our findings prove that the diversification strategy provides the needed context for this accounting practice to be possible in highly diversified firms. In addition, the results indicate that diversification moderates the relationship between leverage and accrual-based earnings management by changing the nature and the sign of this relationship. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=diversification" title="diversification">diversification</a>, <a href="https://publications.waset.org/abstracts/search?q=earnings%20management" title=" earnings management"> earnings management</a>, <a href="https://publications.waset.org/abstracts/search?q=leverage" title=" leverage"> leverage</a>, <a href="https://publications.waset.org/abstracts/search?q=panel-estimation%20techniques" title=" panel-estimation techniques"> panel-estimation techniques</a> </p> <a href="https://publications.waset.org/abstracts/102339/the-impact-of-diversification-strategy-on-leverage-and-accrual-based-earnings-management" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/102339.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">150</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">146</span> Earnings Management and Tone Management: Evidence from the UK</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Salah%20Kayed%20Kayed">Salah Kayed Kayed</a>, <a href="https://publications.waset.org/abstracts/search?q=Jessica%20Hong%20Yang"> Jessica Hong Yang</a> </p> <p class="card-text"><strong>Abstract:</strong></p> This study investigates, whether earnings management in the audited financial statements is associated with tone management in the narrative sections of the annual report in the UK. Earnings management and narrative disclosure are communication strategies used from managers to communicate with investors or other users. Because earnings management and narrative disclosure stem from managers, they can exploit this by doing manipulation in their earnings, and simultaneously disclosing qualitative text (narrative information) in their reports as a tone of words, which will affect users’ perception, and hence users will be misinformed. The association between earnings and tone management can be explained by the self-serving, through cognitive reference points, theory. The sample period lasts from 2010 to 2015, and the sample comprises all non-financial firms that consider under FTSE 350 in any year during the sample period. A list of words from previous research is used to measure the tone in the narrative sections of the annual report. Because this study focuses on the managerial strategic choice and the subjective issues that come from management, it uses the abnormal tone to capture the managerial discretion on tone, and a number of different discretionary accruals proxies to measure earnings management, where accruals management is considered as a manipulation tool from managers to change the users' perception. This research is motivated to fulfil the literature gap by examining the association between earnings and tone management. Moreover, if firms that apply earnings management use tone management to mislead investors, it is beneficial for investors, policy makers, standard setters, or other users to know whether there is an association between earnings management and tone management. Clearly, we believe that this study is fundamental in the accounting context, where it evaluates the communication strategies that are used in firms' financial reports. Consistent with prior research, it is expected that tone management is positively associated with earnings management. This means that firms that use earnings management have incentives to manipulate in their narrative disclosure through tone of words, to reflect a good perception for users, which will conceal the earnings management techniques used in their reporting. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=earnings%20management" title="earnings management">earnings management</a>, <a href="https://publications.waset.org/abstracts/search?q=FTSE%20350" title=" FTSE 350"> FTSE 350</a>, <a href="https://publications.waset.org/abstracts/search?q=narrative%20disclosure" title=" narrative disclosure"> narrative disclosure</a>, <a href="https://publications.waset.org/abstracts/search?q=tone%20management" title=" tone management"> tone management</a> </p> <a href="https://publications.waset.org/abstracts/89311/earnings-management-and-tone-management-evidence-from-the-uk" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/89311.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">278</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">145</span> Earnings vs Cash Flows: The Valuation Perspective</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Megha%20Agarwal">Megha Agarwal</a> </p> <p class="card-text"><strong>Abstract:</strong></p> The research paper is an effort to compare the earnings based and cash flow based methods of valuation of an enterprise. The theoretically equivalent methods based on either earnings such as Residual Earnings Model (REM), Abnormal Earnings Growth Model (AEGM), Residual Operating Income Method (ReOIM), Abnormal Operating Income Growth Model (AOIGM) and its extensions multipliers such as price/earnings ratio, price/book value ratio; or cash flow based models such as Dividend Valuation Method (DVM) and Free Cash Flow Method (FCFM) all provide different estimates of valuation of the Indian giant corporate Reliance India Limited (RIL). An ex-post analysis of published accounting and financial data for four financial years from 2008-09 to 2011-12 has been conducted. A comparison of these valuation estimates with the actual market capitalization of the company shows that the complex accounting based model AOIGM provides closest forecasts. These different estimates may be derived due to inconsistencies in discount rate, growth rates and the other forecasted variables. Although inputs for earnings based models may be available to the investor and analysts through published statements, precise estimation of free cash flows may be better undertaken by the internal management. The estimation of value from more stable parameters as residual operating income and RNOA could be considered superior to the valuations from more volatile return on equity. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=earnings" title="earnings">earnings</a>, <a href="https://publications.waset.org/abstracts/search?q=cash%20flows" title=" cash flows"> cash flows</a>, <a href="https://publications.waset.org/abstracts/search?q=valuation" title=" valuation"> valuation</a>, <a href="https://publications.waset.org/abstracts/search?q=Residual%20Earnings%20Model%20%28REM%29" title=" Residual Earnings Model (REM)"> Residual Earnings Model (REM)</a> </p> <a href="https://publications.waset.org/abstracts/11464/earnings-vs-cash-flows-the-valuation-perspective" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/11464.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">376</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">144</span> The Relation between Earnings Management with the Financial Reporting</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Anocha%20Rojanapanich">Anocha Rojanapanich</a> </p> <p class="card-text"><strong>Abstract:</strong></p> The objective of this research is to investigate the effects of earnings management on corporate transparency of the company in Dusit area workplace via financial reporting reliability and stakeholder acceptance as independent variable. And the company in Dusit are are taken as the population and sample. The questionnaire is used to collect data. Exploratory Factor Analysis is implemented to ensure construct validity, and correlation statistic is selected to test the relationship among all variable and the ordinary least squares regression is used to explore the hypothesized. The results show that earnings management has a significant and negative impact on financial reporting reliability, stakeholder acceptance, and corporate transparency. Both financial reporting reliability and stakeholder acceptance have an important and positive effect on corporate transparency, and they are then mediators of the earnings management-corporate transparency relationships. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=dusit%20area%20workplace" title="dusit area workplace">dusit area workplace</a>, <a href="https://publications.waset.org/abstracts/search?q=earnings%20management" title=" earnings management"> earnings management</a>, <a href="https://publications.waset.org/abstracts/search?q=financial%20report" title=" financial report"> financial report</a>, <a href="https://publications.waset.org/abstracts/search?q=business%20and%20marketing%20management" title=" business and marketing management"> business and marketing management</a> </p> <a href="https://publications.waset.org/abstracts/17780/the-relation-between-earnings-management-with-the-financial-reporting" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/17780.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">406</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">143</span> The Effect of Internal Auditing Function on the Quality of Financial Reporting: A Theoretical Framework</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Hani%20Albogami">Hani Albogami</a> </p> <p class="card-text"><strong>Abstract:</strong></p> The internal audit function is considered as one of the internal corporate governance mechanisms that may have an impact on improving earnings quality by constraining earnings management. The internal audit function is also a unique corporate governance mechanism because internal auditors have more involvement with the day-to-day operations comparing to the audit committee, and also internal auditors audit their companies the whole year compared to the external auditor who audits only a certain time of the year. The relationships between internal audit function and earnings management can be understood by some theories. Therefore, this paper provides a theoretical background of the influence of the quality of internal audit function on earnings management. In particular, the agency theory, institutional theory, singling theory, and resource dependency theory are adapted by this paper to provide some understanding and analyses that can be a basis for future research to contribute to the corporate governance academic studies. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=internal%20audit" title="internal audit">internal audit</a>, <a href="https://publications.waset.org/abstracts/search?q=corporate%20governance" title=" corporate governance"> corporate governance</a>, <a href="https://publications.waset.org/abstracts/search?q=earnings%20management" title=" earnings management"> earnings management</a>, <a href="https://publications.waset.org/abstracts/search?q=accounting" title=" accounting"> accounting</a> </p> <a href="https://publications.waset.org/abstracts/135376/the-effect-of-internal-auditing-function-on-the-quality-of-financial-reporting-a-theoretical-framework" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/135376.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">202</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">142</span> Stock Price Prediction with 'Earnings' Conference Call Sentiment</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Sungzoon%20Cho">Sungzoon Cho</a>, <a href="https://publications.waset.org/abstracts/search?q=Hye%20Jin%20Lee"> Hye Jin Lee</a>, <a href="https://publications.waset.org/abstracts/search?q=Sungwhan%20Jeon"> Sungwhan Jeon</a>, <a href="https://publications.waset.org/abstracts/search?q=Dongyoung%20Min"> Dongyoung Min</a>, <a href="https://publications.waset.org/abstracts/search?q=Sungwon%20Lyu"> Sungwon Lyu</a> </p> <p class="card-text"><strong>Abstract:</strong></p> Major public corporations worldwide use conference calls to report their quarterly earnings. These 'earnings' conference calls allow for questions from stock analysts. We investigated if it is possible to identify sentiment from the call script and use it to predict stock price movement. We analyzed call scripts from six companies, two each from Korea, China and Indonesia during six years 2011Q1 – 2017Q2. Random forest with Frequency-based sentiment scores using Loughran MacDonald Dictionary did better than control model with only financial indicators. When the stock prices went up 20 days from earnings release, our model predicted correctly 77% of time. When the model predicted 'up,' actual stock prices went up 65% of time. This preliminary result encourages us to investigate advanced sentiment scoring methodologies such as topic modeling, auto-encoder, and word2vec variants. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=earnings%20call%20script" title="earnings call script">earnings call script</a>, <a href="https://publications.waset.org/abstracts/search?q=random%20forest" title=" random forest"> random forest</a>, <a href="https://publications.waset.org/abstracts/search?q=sentiment%20analysis" title=" sentiment analysis"> sentiment analysis</a>, <a href="https://publications.waset.org/abstracts/search?q=stock%20price%20prediction" title=" stock price prediction"> stock price prediction</a> </p> <a href="https://publications.waset.org/abstracts/86655/stock-price-prediction-with-earnings-conference-call-sentiment" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/86655.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">292</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">141</span> Corporate Social Responsibility, Earnings, and Tax Avoidance: Evidence from Indonesia </h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Cahyaningsih%20Cahyaningsih">Cahyaningsih Cahyaningsih</a>, <a href="https://publications.waset.org/abstracts/search?q=Fu%27ad%20Rakhman"> Fu'ad Rakhman</a> </p> <p class="card-text"><strong>Abstract:</strong></p> This study examines empirically the association between corporate social responsibility (CSR) and tax avoidance. This study also investigates the effect of earnings on the relation between CSR and tax avoidance. Effective tax rate (ETR) and cash effective tax rate (CETR) were used to measure tax avoidance. Corporate social responsibility fund (CSRF) and corporate social responsibility disclosure (CSRD) were used as proxies for CSR. Test was conducted for public firms which were listed in the Indonesia Stock Exchange during the period of 2011-2014. Based on slack resource theory, this study finds that the relation between CSR and tax avoidance is moderated by earnings. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=corporate%20social%20responsibility%20disclosure" title="corporate social responsibility disclosure">corporate social responsibility disclosure</a>, <a href="https://publications.waset.org/abstracts/search?q=corporate%20social%20responsibility%20fund" title=" corporate social responsibility fund"> corporate social responsibility fund</a>, <a href="https://publications.waset.org/abstracts/search?q=earnings" title=" earnings"> earnings</a>, <a href="https://publications.waset.org/abstracts/search?q=tax%20avoidance" title=" tax avoidance"> tax avoidance</a> </p> <a href="https://publications.waset.org/abstracts/57745/corporate-social-responsibility-earnings-and-tax-avoidance-evidence-from-indonesia" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/57745.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">279</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">140</span> The Impact of Corporate Social Responsibility Information Disclosure on the Accuracy of Analysts' Earnings Forecasts </h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Xin-Hua%20Zhao">Xin-Hua Zhao</a> </p> <p class="card-text"><strong>Abstract:</strong></p> In recent years, the growth rate of social responsibility reports disclosed by Chinese corporations has grown rapidly. The economic effects of the growing corporate social responsibility reports have become a hot topic. The article takes the chemical listed engineering corporations that disclose social responsibility reports in China as a sample, and based on the information asymmetry theory, examines the economic effect generated by corporate social responsibility disclosure with the method of ordinary least squares. The research is conducted from the perspective of analysts’ earnings forecasts and studies the impact of corporate social responsibility information disclosure on improving the accuracy of analysts' earnings forecasts. The results show that there is a statistically significant negative correlation between corporate social responsibility disclosure index and analysts’ earnings forecast error. The conclusions confirm that enterprises can reduce the asymmetry of social and environmental information by disclosing social responsibility reports, and thus improve the accuracy of analysts’ earnings forecasts. It can promote the effective allocation of resources in the market. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=analysts%27%20earnings%20forecasts" title="analysts' earnings forecasts">analysts' earnings forecasts</a>, <a href="https://publications.waset.org/abstracts/search?q=corporate%20social%20responsibility%20disclosure" title=" corporate social responsibility disclosure"> corporate social responsibility disclosure</a>, <a href="https://publications.waset.org/abstracts/search?q=economic%20effect" title=" economic effect"> economic effect</a>, <a href="https://publications.waset.org/abstracts/search?q=information%20asymmetry" title=" information asymmetry"> information asymmetry</a> </p> <a href="https://publications.waset.org/abstracts/114447/the-impact-of-corporate-social-responsibility-information-disclosure-on-the-accuracy-of-analysts-earnings-forecasts" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/114447.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">156</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">139</span> Analysis of Unconditional Conservatism and Earnings Quality before and after the IFRS Adoption</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Monica%20Santi">Monica Santi</a>, <a href="https://publications.waset.org/abstracts/search?q=Evita%20Puspitasari"> Evita Puspitasari</a> </p> <p class="card-text"><strong>Abstract:</strong></p> International Financial Reporting Standard (IFRS) has developed the principle based accounting standard. Based on this, IASB then eliminated the conservatism concept within accounting framework. Conservatism concept represents a prudent reaction to uncertainty to try to ensure that uncertainties and risk inherent in business situations are adequately considered. The conservatism concept has two ingredients: conditional conservatism or ex-post (news depending prudence) and unconditional conservatism or ex-ante (news-independent prudence). IFRS in substance disregards the unconditional conservatism because the unconditional conservatism can cause the understatement assets or overstated liabilities, and eventually the financial statement would be irrelevance since the information does not represent the real fact. Therefore, the IASB eliminate the conservatism concept. However, it does not decrease the practice of unconditional conservatism in the financial statement reporting. Therefore, we expected the earnings quality would be affected because of this situation, even though the IFRS implementation was expected to increase the earnings quality. The objective of this study was to provide empirical findings about the unconditional conservatism and the earnings quality before and after the IFRS adoption. The earnings per accrual measure were used as the proxy for the unconditional conservatism. If the earnings per accrual were negative (positive), it meant the company was classified as the conservative (not conservative). The earnings quality was defined as the ability of the earnings in reflecting the future earnings by considering the earnings persistence and stability. We used the earnings response coefficient (ERC) as the proxy for the earnings quality. ERC measured the extant of a security’s abnormal market return in response to the unexpected component of reporting earning of the firm issuing that security. The higher ERC indicated the higher earnings quality. The manufacturing companies listed in the Indonesian Stock Exchange (IDX) were used as the sample companies, and the 2009-2010 period was used to represent the condition before the IFRS adoption, and 2011-2013 was used to represent the condition after the IFRS adoption. Data was analyzed using the Mann-Whitney test and regression analysis. We used the firm size as the control variable with the consideration the firm size would affect the earnings quality of the company. This study had proved that the unconditional conservatism had not changed, either before and after the IFRS adoption period. However, we found the different findings for the earnings quality. The earnings quality had decreased after the IFRS adoption period. This empirical results implied that the earnings quality before the IFRS adoption was higher. This study also had found that the unconditional conservatism positively influenced the earnings quality insignificantly. The findings implied that the implementation of the IFRS had not decreased the unconditional conservatism practice and has not altered the earnings quality of the manufacturing company. Further, we found that the unconditional conservatism did not affect the earnings quality. Eventhough the empirical result shows that the unconditional conservatism gave positive influence to the earnings quality, but the influence was not significant. Thus, we concluded that the implementation of the IFRS did not increase the earnings quality. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=earnings%20quality" title="earnings quality">earnings quality</a>, <a href="https://publications.waset.org/abstracts/search?q=earnings%20response%20coefficient" title=" earnings response coefficient"> earnings response coefficient</a>, <a href="https://publications.waset.org/abstracts/search?q=IFRS%20Adoption" title=" IFRS Adoption"> IFRS Adoption</a>, <a href="https://publications.waset.org/abstracts/search?q=unconditional%20conservatism" title=" unconditional conservatism"> unconditional conservatism</a> </p> <a href="https://publications.waset.org/abstracts/43191/analysis-of-unconditional-conservatism-and-earnings-quality-before-and-after-the-ifrs-adoption" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/43191.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">260</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">138</span> Price to Earnings Growth (PEG) Predicting Future Returns Better than the Price to Earnings (PE) Ratio</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Lindrianasari%20Stefanie">Lindrianasari Stefanie</a>, <a href="https://publications.waset.org/abstracts/search?q=Aminah%20Khairudin"> Aminah Khairudin</a> </p> <p class="card-text"><strong>Abstract:</strong></p> This study aims to provide empirical evidence regarding the ability of Price to Earnings Ratio and PEG Ratio in predicting future stock returns issuers. The samples used in this study are stocks that go into LQ45. The main contribution is to assign empirical evidence if the PEG Ratio can provide optimum return compared to Price to Earnings Ratio. This study used a sample of the entire company into the group LQ45 with the period of observation. The data used is limited to the financial statements of a company incorporated in LQ45 period July 2013-July 2014, using the financial statements and the position of the company's closing stock price at the end of 2010 as a reference benchmark for the growth of the company's stock price compared to the closing price of 2013. This study found that the method of PEG Ratio can outperform the method of PE ratio in predicting future returns on the stock portfolio of LQ45. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=price%20to%20earnings%20growth" title="price to earnings growth">price to earnings growth</a>, <a href="https://publications.waset.org/abstracts/search?q=price%20to%20earnings%20ratio" title=" price to earnings ratio"> price to earnings ratio</a>, <a href="https://publications.waset.org/abstracts/search?q=future%20returns" title=" future returns"> future returns</a>, <a href="https://publications.waset.org/abstracts/search?q=stock%20price" title=" stock price"> stock price</a> </p> <a href="https://publications.waset.org/abstracts/16670/price-to-earnings-growth-peg-predicting-future-returns-better-than-the-price-to-earnings-pe-ratio" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/16670.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">412</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">137</span> The Impact of Corporate Governance Mechanisms on Earnings Management Practices: Evidence from Jordan</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Lara%20Al-Haddad">Lara Al-Haddad</a>, <a href="https://publications.waset.org/abstracts/search?q=Mark%20Whittington"> Mark Whittington</a> </p> <p class="card-text"><strong>Abstract:</strong></p> This paper aims to examine the impact of two influential internal corporate governance mechanisms, namely board characteristics and ownership structure on the use of real activities-based and accrual-based earnings management by Jordanian public firms. Using panel data from Jordanian public firms after the introduction of the Jordanian Corporate Governance Code (JCGC) in 2009, the study finds both institutional ownership and managerial ownership constrain the use of real and accrual earnings manipulations. On the other side, both independent directors and largest shareholders are found to exaggerate the incidence of using real and accrual earnings management. The study also examines the trade-off between real and accrual earnings management and found that Jordanian firms use a combination of real and accrual-based earnings management to obtain the greatest effect on earnings reporting strategies. For the purpose of this study, three types of real earnings management are considered: sales manipulation, overproduction, and the abnormal reduction of discretionary expenditures. The abnormal discretionary accrual is considered for accruals management. While for the internal corporate governance mechanisms; board characteristics are examined by using board independence, board size, and CEO-duality; and ownership structure is examined by using managerial ownership, institutional ownership, foreign ownership and largest shareholder ownership. To the best knowledge of the researchers, this study is the first to examine the relationship between board characteristics and real earnings management in Jordan. Further, it is the first to examine the relationship between corporate governance mechanisms and discretionary accruals after the introduction of the Jordanian Corporate Governance Code in 2009. Thus, the findings of this study have important policy implications for policymakers, regulators, standard setters, audit professional, and investors in their attempts to constrain the practice of earnings management, whether real or accrual, and to improve the financial reporting quality in Jordan. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=board%20characteristics" title="board characteristics">board characteristics</a>, <a href="https://publications.waset.org/abstracts/search?q=Jordan" title=" Jordan"> Jordan</a>, <a href="https://publications.waset.org/abstracts/search?q=ownership%20structure" title=" ownership structure"> ownership structure</a>, <a href="https://publications.waset.org/abstracts/search?q=real%20earnings%20management" title=" real earnings management"> real earnings management</a> </p> <a href="https://publications.waset.org/abstracts/63986/the-impact-of-corporate-governance-mechanisms-on-earnings-management-practices-evidence-from-jordan" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/63986.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">346</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">136</span> International Comparative Study of International Financial Reporting Standards Adoption and Earnings Quality: Effects of Differences in Accounting Standards, Industry Category, and Country Characteristics</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Ichiro%20Mukai">Ichiro Mukai</a> </p> <p class="card-text"><strong>Abstract:</strong></p> The purpose of this study is to investigate whether firms applying International Financial Reporting Standards (IFRS), provide high-quality and comparable earnings information that is useful for decision making of information users relative to firms applying local Generally Accepted Accounting Principles (GAAP). Focus is placed on the earnings quality of listed firms in several developed countries: Australia, Canada, France, Germany, Japan, the United Kingdom (UK), and the United States (US). Except for Japan and the US, the adoption of IFRS is mandatory for listed firms in these countries. In Japan, the application of IFRS is allowed for specific listed firms. In the US, the foreign firms listed on the US securities market are permitted to apply IFRS but the listed domestic firms are prohibited from doing so. In this paper, the differences in earnings quality are compared between firms applying local GAAP and those applying IFRS in each country and industry category, and the reasons of differences in earnings quality are analyzed using various factors. The results show that, although the earnings quality of firms applying IFRS is higher than that of firms applying local GAAP, this varies with country and industry category. Thus, even if a single set of global accounting standards is used for all listed firms worldwide, it is difficult to establish comparability of financial information among global firms. These findings imply that various circumstances surrounding firms, industries, and countries etc. influence business operations and affect the differences in earnings quality. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=accruals" title="accruals">accruals</a>, <a href="https://publications.waset.org/abstracts/search?q=earnings%20quality" title=" earnings quality"> earnings quality</a>, <a href="https://publications.waset.org/abstracts/search?q=IFRS" title=" IFRS"> IFRS</a>, <a href="https://publications.waset.org/abstracts/search?q=information%20comparability" title=" information comparability"> information comparability</a> </p> <a href="https://publications.waset.org/abstracts/99537/international-comparative-study-of-international-financial-reporting-standards-adoption-and-earnings-quality-effects-of-differences-in-accounting-standards-industry-category-and-country-characteristics" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/99537.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">169</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">135</span> Effects of Audit Quality and Corporate Governance on Earnings Management of Quoted Deposit Money Banks in Nigeria</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Joel%20S.%20Akintayo">Joel S. Akintayo</a>, <a href="https://publications.waset.org/abstracts/search?q=Ramat%20T.%20Salman"> Ramat T. Salman</a> </p> <p class="card-text"><strong>Abstract:</strong></p> The stakeholders’ pressure on corporate managers to maintain firm’s profitability has created economic incentives for management to engage in earnings management practices. Therefore, this study examines the effects of audit quality and corporate governance on earnings management of quoted deposit money banks (DMBs) in Nigeria. This study specifically investigates the influence of audit tenure, audit fee, board independence, and board size on earnings management of DMBs. Explanatory research design was employed in carrying out the study while secondary data were sourced from the annual reports and accounts of all the 15 quoted DMBs in Nigerian Stock Exchange as at December 31, 2015 for a period of 10 years covering from 2006 to 2015. The data obtained for the study were analyzed using panel regression analysis approach. The findings reveal that board independence has a negative significant effect on earnings management at a 5% level of significance (p=0.002), while audit fee has a positive significant effect on earnings management at a 5% level of significance (p=0.013) and audit tenure has a negative significant effect on earnings management of DMBs at a 5% level of significance (p=0.003). Surprisingly, board size was statistically not significant at a 5% level of significance (p=0.086). The study concludes that high audit quality and sound corporate governance could improve the earnings quality of DMBs. Hence, the study recommends that the authorities saddled with the responsibility of banking supervision in Nigeria such the Securities and Exchange Commission (SEC) and CBN to advise the National Assembly in Nigeria to pass into law the three years professional requirement for audit tenure. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=audit%20quality" title="audit quality">audit quality</a>, <a href="https://publications.waset.org/abstracts/search?q=audit%20tenure" title=" audit tenure"> audit tenure</a>, <a href="https://publications.waset.org/abstracts/search?q=audit%20fee" title=" audit fee"> audit fee</a>, <a href="https://publications.waset.org/abstracts/search?q=board%20independence" title=" board independence"> board independence</a>, <a href="https://publications.waset.org/abstracts/search?q=corporate%20governance" title=" corporate governance"> corporate governance</a>, <a href="https://publications.waset.org/abstracts/search?q=earnings%20management" title=" earnings management"> earnings management</a> </p> <a href="https://publications.waset.org/abstracts/89713/effects-of-audit-quality-and-corporate-governance-on-earnings-management-of-quoted-deposit-money-banks-in-nigeria" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/89713.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">197</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">134</span> Corporate Codes of Ethics and Earnings Discretion: International Evidence</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Chu%20Chen">Chu Chen</a>, <a href="https://publications.waset.org/abstracts/search?q=Giorgio%20Gotti"> Giorgio Gotti</a>, <a href="https://publications.waset.org/abstracts/search?q=Tony%20Kang"> Tony Kang</a>, <a href="https://publications.waset.org/abstracts/search?q=Michael%20Wolfe"> Michael Wolfe</a> </p> <p class="card-text"><strong>Abstract:</strong></p> This study examines the role of codes of ethics in reducing the extent to which managers’ act opportunistically in reporting earnings. Corporate codes of ethics, by clarifying the boundaries of ethical corporate behaviors and making relevant social norms more salient, have the potential to deter managers from engaging in opportunistic financial reporting practices. In a sample of international companies, we find that the quality of corporate codes of ethics is associated with higher earnings quality, i.e., lower discretionary accruals. Our results are confirmed for a subsample of firms more likely to be engaging in opportunistic reporting behavior, i.e., firms that just meet or beat analysts’ forecasts. Further, codes of ethics play a greater role in reducing earnings management for firms in countries with weaker investor protection mechanisms. Our results suggest that corporate codes of ethics can be a viable alternative to country-level investor protection mechanisms in curbing aggressive reporting behaviors. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=corporate%20ethics%20policy" title="corporate ethics policy">corporate ethics policy</a>, <a href="https://publications.waset.org/abstracts/search?q=code%20of%20ethics" title=" code of ethics"> code of ethics</a>, <a href="https://publications.waset.org/abstracts/search?q=business%20ethics" title=" business ethics"> business ethics</a>, <a href="https://publications.waset.org/abstracts/search?q=earnings%20discretion" title=" earnings discretion"> earnings discretion</a>, <a href="https://publications.waset.org/abstracts/search?q=accruals" title=" accruals"> accruals</a> </p> <a href="https://publications.waset.org/abstracts/40258/corporate-codes-of-ethics-and-earnings-discretion-international-evidence" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/40258.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">287</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">133</span> An Examination of Earnings Management by Publicly Listed Targets Ahead of Mergers and Acquisitions</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=T.%20Elrazaz">T. Elrazaz</a> </p> <p class="card-text"><strong>Abstract:</strong></p> This paper examines accrual and real earnings management by publicly listed targets around mergers and acquisitions. Prior literature shows that earnings management around mergers and acquisitions can have a significant economic impact because of the associated wealth transfers among stakeholders. More importantly, acting on behalf of their shareholders or pursuing their self-interests, managers of both targets and acquirers may be equally motivated to manipulate earnings prior to an acquisition to generate higher gains for their shareholders or themselves. Building on the grounds of information asymmetry, agency conflicts, stewardship theory, and the revelation principle, this study addresses the question of whether takeover targets employ accrual and real earnings management in the periods prior to the announcement of Mergers and Acquisitions (M&A). Additionally, this study examines whether acquirers are able to detect targets’ earnings management, and in response, adjust the acquisition premium paid in order not to face the risk of overpayment. This study uses an aggregate accruals approach in estimating accrual earnings management as proxied by estimated abnormal accruals. Additionally, real earnings management is proxied for by employing widely used models in accounting and finance literature. The results of this study indicate that takeover targets manipulate their earnings using accruals in the second year with an earnings release prior to the announcement of the M&A. Moreover, in partitioning the sample of targets according to the method of payment used in the deal, the results are restricted only to targets of stock-financed deals. These results are consistent with the argument that targets of cash-only or mixed-payment deals do not have the same strong motivations to manage their earnings as their stock-financed deals counterparts do additionally supporting the findings of prior studies that the method of payment in takeovers is value relevant. The findings of this study also indicate that takeover targets manipulate earnings upwards through cutting discretionary expenses the year prior to the acquisition while they do not do so by manipulating sales or production costs. Moreover, in partitioning the sample of targets according to the method of payment used in the deal, the results are restricted only to targets of stock-financed deals, providing further robustness to the results derived under the accrual-based models. Finally, this study finds evidence suggesting that acquirers are fully aware of the accrual-based techniques employed by takeover targets and can unveil such manipulation practices. These results are robust to alternative accrual and real earnings management proxies, as well as controlling for the method of payment in the deal. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=accrual%20earnings%20management" title="accrual earnings management">accrual earnings management</a>, <a href="https://publications.waset.org/abstracts/search?q=acquisition%20premium" title=" acquisition premium"> acquisition premium</a>, <a href="https://publications.waset.org/abstracts/search?q=real%20earnings%20management" title=" real earnings management"> real earnings management</a>, <a href="https://publications.waset.org/abstracts/search?q=takeover%20targets" title=" takeover targets"> takeover targets</a> </p> <a href="https://publications.waset.org/abstracts/127979/an-examination-of-earnings-management-by-publicly-listed-targets-ahead-of-mergers-and-acquisitions" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/127979.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">115</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">132</span> Detecting Earnings Management via Statistical and Neural Networks Techniques</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Mohammad%20Namazi">Mohammad Namazi</a>, <a href="https://publications.waset.org/abstracts/search?q=Mohammad%20Sadeghzadeh%20Maharluie"> Mohammad Sadeghzadeh Maharluie</a> </p> <p class="card-text"><strong>Abstract:</strong></p> Predicting earnings management is vital for the capital market participants, financial analysts and managers. The aim of this research is attempting to respond to this query: Is there a significant difference between the regression model and neural networks’ models in predicting earnings management, and which one leads to a superior prediction of it? In approaching this question, a Linear Regression (LR) model was compared with two neural networks including Multi-Layer Perceptron (MLP), and Generalized Regression Neural Network (GRNN). The population of this study includes 94 listed companies in Tehran Stock Exchange (TSE) market from 2003 to 2011. After the results of all models were acquired, ANOVA was exerted to test the hypotheses. In general, the summary of statistical results showed that the precision of GRNN did not exhibit a significant difference in comparison with MLP. In addition, the mean square error of the MLP and GRNN showed a significant difference with the multi variable LR model. These findings support the notion of nonlinear behavior of the earnings management. Therefore, it is more appropriate for capital market participants to analyze earnings management based upon neural networks techniques, and not to adopt linear regression models. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=earnings%20management" title="earnings management">earnings management</a>, <a href="https://publications.waset.org/abstracts/search?q=generalized%20linear%20regression" title=" generalized linear regression"> generalized linear regression</a>, <a href="https://publications.waset.org/abstracts/search?q=neural%20networks%20multi-layer%20perceptron" title=" neural networks multi-layer perceptron"> neural networks multi-layer perceptron</a>, <a href="https://publications.waset.org/abstracts/search?q=Tehran%20stock%20exchange" title=" Tehran stock exchange"> Tehran stock exchange</a> </p> <a href="https://publications.waset.org/abstracts/29730/detecting-earnings-management-via-statistical-and-neural-networks-techniques" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/29730.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">421</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">131</span> Earnings Management from Taiwan Gisa Firms</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=An-an%20Chiu">An-an Chiu</a>, <a href="https://publications.waset.org/abstracts/search?q=Shaio%20Yan%20Huang"> Shaio Yan Huang</a>, <a href="https://publications.waset.org/abstracts/search?q=Ling-Na%20Chen"> Ling-Na Chen</a>, <a href="https://publications.waset.org/abstracts/search?q=Wei-Hua%20Lin"> Wei-Hua Lin</a> </p> <p class="card-text"><strong>Abstract:</strong></p> Research has primarily focused on listed companies, less is done regarding small and medium-sized enterprises. Under the authorities' support, Taipei Exchange (TPEx) started Go Incubation Board for Startup and Acceleration Firms (GISA) in January 2014. This platform is designed to help small-sized innovative companies grow and to enter the capital market in the future. This research yield insight into earnings management activities around seasoned equity offerings (SEO) based on Taiwan’s GISA firms and the effectiveness of external corporate governance. Data for the study come from the GISA Market Observation Post System from January 2014 to December 2016. The result finds that GISA firms prone to upward accrual-based earnings management during SEO to avoid long-term negative consequences. Especially, firms with paid-in capital more than NT$ 30 million, higher fundraising amounts, or smaller-sized firms, tend to increase discretionary accruals. Finally, consistent with prior literature, CPA firms effectively serve as the role of external corporate governances on mitigating earnings management. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=GISA" title="GISA">GISA</a>, <a href="https://publications.waset.org/abstracts/search?q=earnings%E3%80%80management" title=" earnings　management"> earnings　management</a>, <a href="https://publications.waset.org/abstracts/search?q=CPA" title=" CPA"> CPA</a>, <a href="https://publications.waset.org/abstracts/search?q=seasoned%20equity%20offerings" title=" seasoned equity offerings"> seasoned equity offerings</a> </p> <a href="https://publications.waset.org/abstracts/122903/earnings-management-from-taiwan-gisa-firms" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/122903.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">139</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">130</span> Audit Committee Characteristics and Earnings Quality of Listed Food and Beverages Firms in Nigeria </h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Hussaini%20Bala">Hussaini Bala</a> </p> <p class="card-text"><strong>Abstract:</strong></p> There are different opinions in the literature on the relationship between Audit Committee characteristics and earnings management. The mix of opinions makes the direction of their relationship ambiguous. This study investigated the relationship between Audit Committee characteristics and earnings management of listed food and beverages Firms in Nigeria. The study covered the period of six years from 2007 to 2012. Data for the study were extracted from the Firms’ annual reports and accounts. After running the OLS regression, a robustness test was conducted for the validity of statistical inferences. The dependent variable was generated using two steps regression in order to determine the discretionary accrual of the sample Firms. Multiple regression was employed to run the data of the study using Random Model. The results from the analysis revealed a significant association between audit committee characteristics and earnings management of the Firms. While audit committee size and committees’ financial expertise showed an inverse relationship with earnings management, committee’s independence, and frequency of meetings are positively and significantly related to earnings management. In line with the findings, the study recommended among others that listed food and beverages Firms in Nigeria should strictly comply with the provision of Companies and Allied Matters Act (CAMA) and SEC Code of Corporate Governance on the issues regarding Audit Committees. Regulators such as SEC should increase the minimum number of Audit Committee members with financial expertise and also have a statutory position on the maximum number of Audit Committees meetings, which should not be greater than four meetings in a year as SEC code of corporate governance is silent on this. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=audit%20committee" title="audit committee">audit committee</a>, <a href="https://publications.waset.org/abstracts/search?q=earnings%20management" title=" earnings management"> earnings management</a>, <a href="https://publications.waset.org/abstracts/search?q=listed%20Food%20and%20beverages%20size" title=" listed Food and beverages size"> listed Food and beverages size</a>, <a href="https://publications.waset.org/abstracts/search?q=leverage" title=" leverage"> leverage</a>, <a href="https://publications.waset.org/abstracts/search?q=Nigeria" title=" Nigeria"> Nigeria</a> </p> <a href="https://publications.waset.org/abstracts/33215/audit-committee-characteristics-and-earnings-quality-of-listed-food-and-beverages-firms-in-nigeria" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/33215.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">272</span> </span> </div> </div> <div class="card paper-listing mb-3 mt-3"> <h5 class="card-header" style="font-size:.9rem"><span class="badge badge-info">129</span> The Effects of Changes in Accounting Standards on Loan Loss Provisions (LLP) as Earnings Management Device: Evidence from Malaysia and Nigeria Banks (Part I)</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Ugbede%20Onalo">Ugbede Onalo</a>, <a href="https://publications.waset.org/abstracts/search?q=Mohd%20Lizam"> Mohd Lizam</a>, <a href="https://publications.waset.org/abstracts/search?q=Ahmad%20Kaseri"> Ahmad Kaseri</a> </p> <p class="card-text"><strong>Abstract:</strong></p> In view of dearth of studies on changes in accounting standards and banks’ earnings management particularly in the context of emerging economies, and the recent Malaysia and Nigeria change from their respective local GAAP to IFRS, this study deemed it overwhelming to investigate the effects of the switch on banks’ earnings management focusing on LLP as the manipulative device. This study employed judgmental sampling to select twenty eight banks- eight Malaysia and twenty Nigeria banks as sample covering period 2008-2013. To provide an empirical research setting in pursuant of the objective of this study, the study period is further partitioned into pre (2008, 2009, 2010) and post (2011, 2012, 2013) IFRS adoption periods. This study consistent with previous studies models a LLP regression model to investigate specific discretionary accruals of banks. Findings suggest that Malaysia and Nigeria banks individually use LLP to manage reported earnings more prior to IFRS implementation. Comparative overall results evidenced that the pre IFRS adoption or domestic GAAP era for both Malaysia and Nigeria sample banks is associated with higher prevalent earnings management through LLP than the corresponding post IFRS adoption era in diverse magnitude but in favour of Malaysia banks for both periods. With results demonstrating that IFRS adoption is linked to lower earnings management via LLP, this study therefore recommends the global adoption of IFRS as reporting framework. This study also endorses that Nigeria banks embrace and borrow a leaf from Malaysia banks good corporate governance practices. <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=accounting%20standards" title="accounting standards">accounting standards</a>, <a href="https://publications.waset.org/abstracts/search?q=IFRS" title=" IFRS"> IFRS</a>, <a href="https://publications.waset.org/abstracts/search?q=FRS" title=" FRS"> FRS</a>, <a href="https://publications.waset.org/abstracts/search?q=SAS" title=" SAS"> SAS</a>, <a href="https://publications.waset.org/abstracts/search?q=LLP" title=" LLP"> LLP</a>, <a href="https://publications.waset.org/abstracts/search?q=earnings%20management" title=" earnings management"> earnings management</a> </p> <a href="https://publications.waset.org/abstracts/17051/the-effects-of-changes-in-accounting-standards-on-loan-loss-provisions-llp-as-earnings-management-device-evidence-from-malaysia-and-nigeria-banks-part-i" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/17051.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">402</span> </span> </div> </div> <ul class="pagination"> <li class="page-item disabled"><span class="page-link">&lsaquo;</span></li> <li class="page-item active"><span class="page-link">1</span></li> <li class="page-item"><a class="page-link" href="https://publications.waset.org/abstracts/search?q=earnings&page=2">2</a></li> <li class="page-item"><a class="page-link" href="https://publications.waset.org/abstracts/search?q=earnings&page=3">3</a></li> <li class="page-item"><a class="page-link" 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